Stephanie greece has responded to that ultimatum in europe by asking for a new bailout. Today, the greeks formally asked for a new bailout. In return, greece said it would impose tax reform as early as next week. This morning, the greek Prime Minister promised to deliver. In the next two to three days, we will put forward concrete proposals in detail and i am confident we will be able to meet the obligations of the crucial times. Stephanie the European Commissioner meanwhile says there is a scenario if greece has to leave euro. We will hear from the Economic Affairs commissioner in europe in the next hour. Erik in china, the government is trying to stop a meltdown. Nothing is working and on paper, investors have lost trillions of dollars. Down with 30 since june 12. Here is the issue. Much of that money is wrote money. Borrowed money. At one point, walk locked out of the market because the trigger had been tripped. Jpmorgan is preparing to settle federal investigation into credit card and Debt Collection abuses. The bank will resolve these claims by paying at least 25 million. Also providing inaccurate information. Stephanie we will be seeing a lot more of this. Thousands gathered in los angeles to salute the u. S. Womens soccer team for the world cup victory. It is the first to honor the team that does not have the word new york in its name. Historical moment here in our fair city. Those are your top headlines for the hour. Erik top five things you need to know right now. We should begin with china. Stephanie that is what our number one is. A senior markets correspondent has a further look. Julie, talk to us. Julie deep selloff across asia triggered by china wiping out trillions of dollars in market value. The shanghai composite index is down almost 6 32 since its peak in june. The hang seng was down almost 6 , the most since the financial crisis. A lot of people are locked out of the market because market regulators have suspended trading in many different stocks. One third of the stocks in the shanghai composite and then a bunch of others have had limit suspensions. They automatically get suspended. There is an incredible call from Goldman Sachs. Based in hong kong who covers the Chinese Market says it is not a bubble. Authorities do have enough tools in their arsenal to stem the bleeding if you will. Goldman is speaking with the call that there will be a rally in the levels, 27 from tuesdays close. There are still people who are buyers here as we see a freefall. Erik for every seller, there is always a buyer. Stephanie not necessarily in that if the problem. That is why the knife keeps falling. Erik when we get a price, that means there is a buyer pair lets talk about greece. I just returned to from greece. The Prime Minister has upped his request for a program for the stability mechanism. Hans nichols is in brussels where the action is now. He has the latest for us. What can you tell us . Things are changing minute by minute. Where are we now . Hans we heard from the spokesperson saying trust needs to be restored in talks. It gives you a sense how far things have deteriorated and how far things will have to go if this will be approved. Another deadline is thursday night. How will they make numbers add up . Pension reform is not quite accurate. They said pension related measures. It could still be the big sticking point. Value added tax was a huge issue before. Crucially, we have a muted offer to continue to talk about debt restructuring. That is one point where he did not make a clear demand that he needed to have a debt restructure if he would get another threeyear package. A little bit of softer news from the greece side. It gives you a sense of how deep the whole is. Nothing has been done to restore trust. Earlier, he was speaking at the parliament and seemed to blame some of the countries by saying had a just in the Eu Commission the set of buildings i am in now, we would have had a deal, not exactly a way to ingratiate yourself. Erik a dose of realism from the german finance ministry. I cannot say that is enough fear we will get a dose of optimism from the European Commissioner of Economic Affairs. The finance minister will be a 9 00 its morning. Stephanie big moves in banking over barclays. The chairman ousting the coo Antony Jenkins from the head of the bank. Jon ferro just spoke with chairman macfarlane and joins us now from london. What did he have to say about the decision . Every time we here from Antony Jenkins, he does not seem to want to talk about the business is. It is more about changing to be a culture led organization. What really matters is shareholder returns and the bottom line for a lot of people he was not doing it quick enough. When you look at the comments from the board and the chairman specifically, the bottom line is he was fired. This is specifically what the chairman said to me earlier. It essentially was a recovery position. We had the management crisis about three years ago. He was given a terrible role and he has really come through that quite well. Companies are in a much better position to stabilize. Going forward, we have a very different agenda. If you look at the price it is the same as it was six years ago. Something is to move on that. When we reinforce the strategy at the meeting, and considering how we might bring forward the ecig edition of that, realized we need a different sort of person to do it. Another departure in europe and another one on the surface of it that is a bit of an identity crisis. The big Investment Banking ceo at barclays went and they brought in the retail guy. He gets the food as well. A lot of people are asking what are you looking for and who is that guy . Just like credit squeeze suffering from a bit of an identity crisis. Erik you are putting it into perspective. Heads are rolling. This is the third major change in months. Stephanie it is all about shareholder return. I love when jon ferro, he said forget the fluff. That has been made people within barclays and outside who follow the industry bank. That is not what matters third it is returning to shareholders, it is simply not are you doing good. That is not the egos of the business. Erik returns. Number four, minutes to come out today. The imf has reiterated its view that the fed should hold off on raising Interest Rates until 2016. It came as the annual assessment of the u. S. Economy. Stephanie how about number five for you, more jobs could be cut at microsoft as soon as today. The Company Plans to lay off additional workers. The cuts would be on top of 18,000 workers the Software Maker said would be dropping about a year ago. People are waiting to see the next chapter on what he will do it if the game plan is cut, that is not what we like to see. Erik it depends on why it is important. Those different parts of the company, the Cloud Computing strategy, may not be as, i dont know. Stephanie i know how to get the answer. Invite him to come onto Bloomberg Television today. Erik that is a good idea to it we will be back after a short break talking about that scary stock market plunge. Morgan stanleys had wrote china is experiencing symptoms. Stephanie coming up later this afternoon the president and ceo of the New York Times will join Olivia Sterns live from sun valley, idaho. Mark thompson. Stephanie erik some top stories. Diplomats in vienna say theyre closer than ever to a deal on nuclear programs. They are still at odds over several key points. They want the arms embargo lifted and there is disagreement over what would happen if iran breaks the deal. Elon musk is so china figure out why his spacex rocket disintegrated shortly after last month. The rocket broke up while carrying supplies from the International Space station. He spoke to bloomberg in idaho. I think it is something we can recover from. Make sure the future, that we identify any issues and adjust them. We got a lot of support from nasa and commercial companies. Erik that was spacexs seventh miss it seventh mission. Hubers china to raise as much as 1 billion of funding for its china business. China has been discussing evaluation of its budget, 8 billion. It is the first time the service had tried to get investors for an operation in a single country. Those are some of your top headlines. Stephanie joining us now on the phone head of equity and macro and Morgan StanleyInvestment Management and author of you had an oped in the wall street journal this morning in which you write that there are four basic signs of a bubble. Prices disconnected from underlying economic fundamentals, high levels of debt the chinese stock market is at the extreme end on all four metrics which is rare. The bubble is upon us. What will happen next . I think the bubble is unraveling ferociously. You look back at the u. S. In 2007, the valuation of the equity market, even in the 2000 tech bubble in the u. S. , the economic fundamentals in terms of how strong Economic Growth was, in the china case, the growth has been very weak. I think that really is the problem. The market rally is created out of nothing. It is unraveling at such a for oshas space now. No fundamental bases at all for this. Erik i am no Technical Analyst is it possible we see a freefall to 2050 before we know what the next move is . The market is heavily distorted as you know. The market would already be at such levels. That is something not reflected in these levels. Erik i want you to explain yourself a little further. We are not actually seeing the real price action in shanghai stocks because so many stocks are not trading . In other words, if everything were trading, we might see the index closer to 3000 . Is that your point . Yes. We do not have a government intervening to try and prop up some of the stocks. I think the realistic level for the market is much lower than what the current headlines would suggest. Erik what does it tell us that Central Planning, so successful in many other respects as far as the chinese economy is concerned him a seems to have absolutely no power over the stock market . I think the merits of Central Planning have to be overstated here. If you really go back in china, you really have to go back to 2008. The economy was beginning to slow down under the weight of the global crisis. The Chinese Government in acts in its ambition to meet a growth target, decided to leave a lot of debt and the quiddity into the system. As i write, china has taken on 20 billion dollars of new debt since the Global Financial crisis broke out in 2008, even as the rest of the world and a parts of the developed world are deleveraging in that space. You know have the china debt level probably at a higher level than a richer countries such as the United States at about 300 of gdp. That is really the problem that yes when they were freeing up the economy since 2008, they had been growing on the back of more and more debt. The stock market is a symptom of that. The highest as a share of the market for any market history. Stephanie we will leave it there. I am scared and worried and upset. Ruchir sharma. Erik i just want to reiterate the point he made at the beginning of the conversation. We are not actually seeing real prices in chinese stocks because so many of the stocks are trading. If they were, the selloff overnight, 6 would have been much steeper. Stephanie think about the major people on the markets, three weeks ago when he was so bullish on china, many investors had been. You hear from them saying we are not approaching a bubble, the disaster is beginning. Erik stephanie a great investor. I am sure he is a ok. We will be back with more. Stephanie futures read across the board. I want to change the subject because i do not like bad news and i have good news and five me. Then he is a doctor who taught himself how to invest in his spare time it turns out he is good at it. The 2 billion fund he manages was the topperforming diversified u. S. Stock fund over the last five years. Lets find out how he is doing it. Walk us through. You went to medical school, and then . Vinny then made the transition to practicing medicine for a while. I did a residency and fellowship at the hospital and went from that to research fellowship. He does main reasons. The first main reason is we fundamentally have a message that we think needs to be heard. We are a socially responsible fund and as investing its ownership, we think that implies the ownership could confer ethical responsibility for what you own. There is a set of criteria that investors tend to care about and terms of avoiding pornography, tobacco, vices. But there is Something Else people do not appreciate in that world which is that there is also a positive dimension. One of the things we are convinced of is that with faithbased and sri investing if you find Companies Creating value for the world in positive ways, it is actually a way to generate over the long haul. Erik why have you found success with this socially responsible approach when a lot of the social responsible industries do not show a performance relative to the benchmark . Finny most of those are concerned with excluding that actors and companies. Exactly. Behaving in ways that we try to formalize in a lot of different ways. Stephanie like 10 commandments . Erik what are some of your principles, your investing guidelines . Finny one thing we have found and it is codified in the ultimate book countries trying to put their customers above making a profit ironically make more profit in the long haul. The trick is to try to identify companies that are actually doing it. So you are right but if you companies are actually doing it. Most come to his taken over by number crunchers focusing on the bottom line as opposed to those truly trying to add values to their customers. A lot of companies we like. One thing we have found is looking for companies that have particularly high mechanisms when it comes to employees, you just had elon musk in an earlier segment. We have been longtime investors in tesla and it worked out really well. One of the things about tesla as an example they have raving fan clubs. We had a quote from an employee who said he would work at tesla even if you were paid there. Stephanie where do you draw the line . I have gone to tesla events because and they are filled with hot women in short dresses. One would think if you are avoiding vices, it does not feel very christian. Finny a good question. One thing we are trying to identify is what is the core business . It is hard find a business we would agree with entirely. Does the fundamental Business Activity seem like something we really like . Stephanie investors as owners, does that mean you have our turnover was 16 and we believe in longterm ownership. Erik is there a conflict between your approach and clearly or beliefs and your belief system, and your expertise . In biotechnology . Some people might point to a challenge reconciling one with the other because what is going on in gene therapy and what some people would call playing god. Finny biotech is one of the most amazing areas from a social perspective. There are roughly 20,000 human diseases out there. We have therapies for a very small number of those. It ought to be the area were the most excited about. There are still a lot of people dying from a lot of pretty terrible diseases. It is a space in which one can innovate and create interesting therapies. Erik what about the cost . When curing hepatitis c costs 20,000 a year the approach is a vast improvement over anything done before, but the cost and a profit that a Company Wants to book it is hard for people to get their heads around. Finny there are three ways to think about cost. With cost, there is one dimension of cost that is, are you lowering existing cost of whatever it is you have. That would be an example. They actually made a pretty compelling argument that their chart their therapy was cheaper than existing therapies. The second ways you can look at Something Like quality and try to benchmark, am i adding value relative to the quality benchmark that we have agreed upon. The third is, there is an implied social contract that exists right now between society, particularly the American People and biotech companies. If you deliver meaningful advances in health care, society will pay for it. People do not want liver transplants. They do not want to die a horrible cancer death. As that contract continues to exist, it does not exist outside of the world usually. One thing that is a byproduct of that would be, it is very risky and very expensive. If Companies Continue to add on and deliver, the American People have spoken and said, we will not pay for that. If you trying really, some of them are unreasonable but they are often unjustified given the risk taken. Stephanie i producer will care me but i have to ask. Has there been an investment you looked at that would have been a home run for your investors but you stopped and did not fit within the faithbased, socially responsible parameters you have set for yourself . Finny yes. There have been a lot of companies in spaces that are tied in embryonic stem cells abortion things like that, that we have not been able to invest in. Stephanie abortion is an issue for you. Finny right. As a broad representation of the christian faith. The claim is not that every company that does not meet this criteria will fare fail. You should feel good about the companies you are investing in. Erik we do have two run. We need to do this again. A quick question. Does Climate Change belong . Fi